Japanese manufacturing sector shows signs of steadying in December

Japan’s Manufacturing Sector Shows Signs of Stabilization at 2025 Year-End

According to the most recent PMI® report, Japan’s manufacturing industry experienced steady business conditions as 2025 drew to a close. The decline in new orders eased considerably, marking the slowest drop in over a year and a half, while overall production levels remained largely unchanged. Manufacturers continued to expand their workforce, with hiring accelerating slightly compared to previous months. Although business optimism dipped from November’s levels, it stayed robust overall. On the cost front, input prices saw their sharpest rise since April, prompting another notable increase in selling prices.